Indiana seeks $300M for child services
Legislators face pressure to explain why annual costs for the state agency have reached $1.7 billion.
By Priya Marino ·
Indiana lawmakers must approve a new $300 million transfer to the Department of Child Services within the coming months. The agency faces a looming budget deficiency despite having already spent nearly $1.3 billion in state dollars and approximately $400 million in federal funding during the current fiscal year. The total annual cost for child welfare services now stands at nearly $1.7 billion.
Tony Katz, a local radio host, has urged officials to justify the rapid increase in spending. Katz noted that the state has a population of just over six million people, making the high expense difficult to reconcile with the actual number of residents served. He questioned the return on investment for taxpayers who fund the agency.
"I believe at this moment we are allowed to ask a question. And that question is, what? Because what this sounds like is an outrageous amount of money," Katz said. "What exactly is happening that costs us $1.7 billion? What is the ROI on that?"
Reports from the Indiana Capital Chronicle and IBJ state that 72% of the agency's funding goes directly to services for children and families. Katz argued that the remaining costs suggest a systemic issue regarding how the state manages its dependency programs. He suggested that the current model may be expanding a state-run class of dependent individuals rather than promoting fiscal accountability.
"Are we pretending or are we stating that it is the job of the state to be the provider? Because I don't think that's the right decision," Katz said. "That creates dependency. And as we can see, that doesn't work."
Katz criticized members of the General Assembly from both parties for their method of covering budget gaps. He said lawmakers frequently raise taxes on local small businesses when state budgets fail. In a previous instance, the assembly increased taxes on local cigar shops, pushing Indiana's tax rate higher than Michigan's.
"There was a shortfall and you picked one business and you said, screw them," Katz said. He urged the General Assembly to tighten state spending before penalizing shop owners.
With state officials managing the new mid-year cash transfer, Katz requested a clear explanation from the agency. "What I see here is everything that feels like a scandal, but I can't prove that. I need to understand it," he said. "Can someone explain what's happening?"
